Laboratory Corp. of America Holdings
The 10-second takeaway
For the quarter ended March 31 (Q1), Laboratory Corp. of America Holdings met expectations on revenues and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue grew slightly. Non-GAAP earnings per share grew. GAAP earnings per share dropped.
Margins dropped across the board.
Laboratory Corp. of America Holdings tallied revenue of $1.44 billion. The 19 analysts polled by S&P Capital IQ wanted to see net sales of $1.45 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.74. The 20 earnings estimates compiled by S&P Capital IQ forecast $1.77 per share. Non-GAAP EPS of $1.74 for Q1 were 8.1% higher than the prior-year quarter's $1.61 per share. GAAP EPS of $1.56 for Q1 were 4.3% lower than the prior-year quarter's $1.63 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 39.7%, 80 basis points worse than the prior-year quarter. Operating margin was 18.7%, 120 basis points worse than the prior-year quarter. Net margin was 10.2%, 120 basis points worse than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $1.46 billion. On the bottom line, the average EPS estimate is $1.81.
Next year's average estimate for revenue is $5.79 billion. The average EPS estimate is $7.11.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 668 members out of 690 rating the stock outperform, and 22 members rating it underperform. Among 211 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 208 give Laboratory Corp. of America Holdings a green thumbs-up, and three give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Laboratory Corp. of America Holdings is hold, with an average price target of $94.21.
Is Laboratory Corp. of America Holdings the best health care stock for you? Learn how to maximize your investment income and "Secure Your Future With 9 Rock-Solid Dividend Stocks," including one above-average health care logistics company. Click here for instant access to this free report.
- Add Laboratory Corp. of America Holdings to My Watchlist.
Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Laboratory of America. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.